Answer the Following Question(s)using the Information Below

question 61

Multiple Choice

Answer the following question(s) using the information below.Southwestern College is planning to hold a fund raising banquet at one of the local country clubs.It has two options for the banquet:
Southwestern College has budgeted $1,800 for administrative and marketing expenses.It plans to hire a band which will cost another $800.Tickets are expected to be $30 per person.Local business supporters will donate any other items required for the event.
-Mrs.Tisdale is going to sell Christmas tree lights for $40 a box.The lights cost Mrs.Tisdale $10 a box and any unsold lights can be returned for a full refund.She is planning to rent a booth at the upcoming Happy Holidays Convention, which offers three options: Which of the following statements is FALSE?

• A)Her decision will determine the risk she faces.
• B)Contribution margin will vary depending upon the option chosen.
• C)One of the options will allow Mrs.Tisdale to break even, even if she doesn't sell any lights.
• D)Operating income will always be the greatest for Option 3.
• E)Option 3 has the lowest operating leverage.

---

Definitions:

Ethics

Moral principles that guide our behavior.

Moral Question

An issue that involves judgments about what is right and wrong, ethical or unethical.

Business Profits

The monetary gains made by a business after subtracting all expenses from its total revenue.

Moral Principles

Fundamental beliefs about what is right and wrong that guide ethical behavior.